According to BlockBeats, on February 10, CoinDesk senior analyst James Van Straten reported that Bitcoin's mining difficulty has reached a historic high of 114.7 T following a weekend adjustment, marking a 5.61% increase from the previous adjustment.
This change coincides with the Hash Ribbon indicator signaling miner capitulation. The Hash Ribbon is a market indicator that typically forms during miner capitulation, which occurs when mining costs exceed profits, suggesting a potential local bottom for Bitcoin.
Data from Glassnode indicates that miner capitulation began in early February. Bitcoin has declined by over 4% this month. Historically, when this indicator signals capitulation, it often marks a local price bottom.
If this pattern holds, Bitcoin's bottom could be around $91,000. The last capitulation signal appeared in October 2024, after which Bitcoin surged by 50%.
As mining difficulty increases, mining becomes more competitive, adding pressure on miners. January's production data reflects this trend, with Riot Platforms being the only major publicly listed miner to report a month-over-month increase in output.